Small business tax help website

What is a Statutory Employee?

What is the IRS definition of a statutory employee?

The definition of a statutory employee is a person that is treated partly as an employee and partly as a self employed individual.

Statutory or regular employee? When is a person a statutory employee?

Whenever a person is an employee as well as a self employed business owner, the person is considered a statutory employee as opposed to a regular employee.

How is a statutory employee treated for tax purposes?

A statutory employee is treated as:

  • an employee for social security and Medicare purposes and
  • as being self employed for income tax purposes
How to know if I am a statutory employee?

What is a Statutory Employee

If you are a statutory employee for tax purposes, box 13 of your W-2 will be checked.

What professions are often classified as statutory employees?

Full time life insurance salespeople, certain agent or commission drivers, traveling sales people, certain homeworkers.